7.8 Putting It All Together: A Step-by-Step Starter Approach

Bringing together the concepts of portfolio composition, resource basics, and high-level investment planning can be challenging—especially for organizations that are new to Project Portfolio Management (PPM). This section provides a structured, step-by-step approach to help you apply what you’ve learned so far. By following these steps, senior IT leaders can lay a solid foundation for PPM, balancing strategic alignment, resource capacity, and effective governance without becoming overwhelmed by overly complex processes.

7.8.1 Step 1: Identify and Categorize Existing Projects

1. Create a Unified Project List
   • Gather all ongoing and proposed initiatives into a single, consolidated repository (e.g., spreadsheet, shared document, basic PPM tool).
   • Encourage each department or functional area to submit entries, ensuring no “hidden” or shadow projects remain uncovered.
2. Assign Categories
   • Label each project based on the types discussed earlier (e.g., innovation, maintenance, compliance, strategic).
   • Note any subcategories (e.g., operational efficiency, product-centric initiatives) that may be particularly relevant to your organization.
3. Capture Essential Project Data
   • High-level scope (objectives, key deliverables).
   • Estimated budget or cost-to-complete.
   • Timeline or anticipated end date.
   • Primary stakeholders or sponsors.

Outcome: You’ll have a comprehensive, birds-eye view of your current and proposed project landscape, setting the stage for better-informed decisions.

7.8.2 Step 2: Conduct a Basic Strategic Alignment Review

1. Revisit Corporate and IT Goals
   • List the enterprise’s strategic objectives (e.g., digital transformation, revenue growth, market expansion, operational efficiency).
   • Identify any key performance indicators (KPIs) or Objectives and Key Results (OKRs) that leadership has established.
2. Map Projects to Strategic Objectives
   • For each project, link its expected outcomes to specific strategic goals.
   • If a project lacks a clear link, question its priority or scope until alignment is clarified.
3. Highlight Critical Initiatives
   • Determine which projects are vital for regulatory compliance, risk mitigation, or directly driving revenue or customer satisfaction.
   • Flag projects that might be strategic experiments or have a high potential return but also carry high uncertainty.

Outcome: You’ll have an initial filter for prioritization, focusing on projects that directly contribute to high-level objectives.

7.8.3 Step 3: Assess Resource Capacity and Constraints

1. Create a Basic Skills Inventory
   • Document key resource groups (e.g., developers, architects, business analysts) and note specialized areas (security experts, data scientists).
   • Include contractors, consultants, or vendor relationships that may augment capacity.
2. Estimate Demand
   • For each project, capture rough estimates of the number and type of resources required (FTEs, skill sets, time commitments).
   • Map out a high-level timeline or phased approach (e.g., Q1 requirements, Q2 ramp-up).
3. Identify Bottlenecks
   • Look for patterns where the same specialized roles are repeatedly demanded.
   • Flag any periods (e.g., quarter-end in finance) when certain teams are less available.

Outcome: You’ll have a preliminary view of whether your current workforce and budget can handle the proposed portfolio, making capacity constraints visible early.

7.8.4 Step 4: Prioritize and Rank Projects

1. Develop or Refine a Scoring Model
   • Assign weights to criteria such as strategic alignment, ROI, resource requirements, and risk.
   • Score each project numerically (e.g., from 1 to 5) for each criterion, then calculate a total weighted score.
2. Review Scores with a Cross-Functional Team
   • Bring together IT, finance, and business leaders to confirm or challenge scoring outcomes.
   • Adjust weights or criteria if initial results don’t match senior leadership’s priorities.
3. Classify Projects by Priority
   • Separate the “must-haves” (e.g., compliance, mission-critical) from “nice-to-haves” (e.g., exploratory innovation, optional enhancements).
   • Consider forming a tiered list (e.g., top-tier, second-tier) to guide funding and staffing decisions.

Outcome: You’ll have a short list of high-priority projects that align tightly with strategy and are feasible within current resource and budget limits.

7.8.5 Step 5: Allocate Resources and Establish Timelines

1. Build a Resource Allocation Matrix
   • List resources (or roles) on one axis and prioritized projects on the other.
   • Indicate proposed percentages of each individual’s (or role’s) availability.
   • Ensure no one is allocated more than 100% overall; resolve over-allocation by adjusting start dates, phasing out tasks, or reassigning roles.
2. Apply Resource Leveling Techniques
   • Adjust schedules to accommodate critical staff availability.
   • Where unavoidable conflicts arise, escalate to a steering committee for prioritization decisions (e.g., deferring or scaling back certain projects).
3. Consider External or Contract Support
   • Engage vendors or freelance experts for bottleneck skill sets.
   • Define clear onboarding, collaboration, and handoff processes if you leverage external help.

Outcome: You’ll have a realistic project schedule and resource plan that match the organization’s actual capacity, reducing the risk of burnout or delivery delays.

7.8.6 Step 6: Secure Budget and Stage Gate Approvals

1. Develop a Basic Investment Plan
   • Summarize total funding needs by project category (e.g., maintenance, innovation, compliance, strategic).
   • Highlight the projected benefits or ROI for each top-priority project.
2. Present to Senior Leadership or Steering Committee
   • Validate budget assumptions and secure executive sponsorship.
   • Incorporate feedback and adjust allocations if certain initiatives need to be accelerated, delayed, or combined.
3. Set Up Minimal Stage Gates
   • At each key milestone, require a quick review to confirm the project is on track—both financially and in terms of scope—and still aligned with strategic goals.
   • Release subsequent tranches of funding based on these go/no-go checkpoints.

Outcome: Approved projects have clear funding, milestones, and oversight, ensuring transparency and accountability across the portfolio.

7.8.7 Step 7: Launch and Track Projects in a Centralized Tool

1. Choose Your Tool
   • Start with spreadsheets or a low-cost solution if you’re new to PPM.
   • Establish naming conventions, folder structures, and templates for consistent reporting.
2. Create a Portfolio Dashboard
   • Highlight project status, budget consumption, and resource utilization in real time or through regular updates.
   • Ensure executives can see overall health at a glance, with the option to drill down into more detail.
3. Foster Regular Communication
   • Implement weekly or bi-weekly check-ins with project managers to track actual vs. planned progress.
   • Encourage open dialogue about risks, resource challenges, and any shifts in project scope.

Outcome: Projects are actively monitored, leading to quicker detection of issues and more proactive decision-making at the portfolio level.

7.8.8 Step 8: Conduct Periodic Portfolio Reviews and Adjust

1. Monthly or Quarterly Portfolio Reviews
   • Assess whether each project is delivering on its promised outcomes and remaining within budget.
   • Adjust resource assignments or timelines as new priorities emerge.
2. Rebalance as Needed
   • If the business strategy shifts or a high-priority compliance mandate arises, revisit your resource and budget allocations.
   • Consider pausing or terminating underperforming initiatives to free up capacity for higher-impact projects.
3. Capture Lessons Learned
   • Document successes, failures, and optimization opportunities.
   • Share best practices across teams to continuously improve PPM maturity.

Outcome: The portfolio remains dynamic and aligned with evolving business needs, ensuring continuous value delivery and organizational agility.

7.8.9 Key Takeaways

• Practical, Actionable Steps: Implementing PPM does not require an overnight overhaul—start small, build momentum, and refine as you go.
• Strategic Alignment First: Always link projects and resource decisions back to overarching corporate goals, focusing on initiatives that deliver real business value.
• Transparency is Vital: Regular communication, simple governance checkpoints, and visible dashboards encourage stakeholder buy-in and timely course corrections.
• Continuous Improvement: As you iterate, your organization’s PPM maturity will grow—enabling more sophisticated methods like scenario-based planning, advanced resource analytics, and lean portfolio management.

By following this step-by-step starter approach, you set the groundwork for a more robust and adaptive PPM practice. The key is to remain flexible, learn from the process, and gradually evolve your tools and governance models. As the organization matures, these foundational practices will pave the way for integrating advanced capabilities and scaling PPM across all levels of the enterprise.